For 2015-2016, the sector is reporting growth overall, stabilising budgets, rapidly evolving best practices and a strong increase in co-investment among peers.
These latest trends and key data on this entrepreurial approach to philanthropy can be found in The EVPA Survey 2015/2016. The survey polled social investors and grant makers based in Europe, of which 69% seek a societal return over a financial one, and 31% consider societal and social return equally important.
The survey had 108 responding European Venture Philanthropy Organisations (VPOs). Interesting key data and trends include:
* 72% are structured as not-for-profits (such as foundations, charities or companies with a profitable status).
* Governments, own endowment and trusts are the main sources of VP funding/SI funding, representing, alone, almost half of the total resources made available to VPOs.
* Social enterprises and non-profits without trading revenues are the main target of investment, receiving 37% and 35% of total funding respectively.
* Co-investment is a key component of their investment strategy. 63% of respondents have co-invested in the past and 19% said they are interested in doing so. 51% of those that have co-invested did so with foundations engaged in other forms of philanthropy.
* The majority adapt the funding they offer to their investee/beneficiary; 59% of respondents always or often do so.
* Grants remain the primary financing instrument in terms of € spend (42%).
* The most commonly targeted social impact themes are economic and social development (receiving 24% of funding), ahead of financial inclusion (19%), education (15%) and environment (14%).
* The main beneficiaires are youth and children, and people in poverty.
* The most common way to strengthen their beneficiaries/investees organisational capacity is through strategic support (85%), assistance on their revenue strategy (77%) and financial management (73%).
* The majority is focused on outcomes. 96% of VPOs surveyed indicated to measure societal performance of their beneficiaries/investees.
We’re really excited to see this rise in co-investment, which, to us, indicates more collaboration, a pooling of resources, expertise and best practices to ultimately see more impact.
The full survey and snapshot overview can be consulted HERE.